The Public Accounts Committee on Thursday directed the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) to probe into billions of rupees alleged corruption in three development projects initiated by Capital Development Authority (CDA). The chairman of the committee, Syed Khursheed Shah also reprimanded the CDA officials and additional secretary cabinet for losing billions of rupees in flawed projects and giving unnecessary favours to contractors.
"Only politicians in this country are being labelled as corrupt and inept while the public organisations are infested with the most corrupt officials," he said, adding that the investigation agencies should effectively pursue the corruption cases and recover the plundered money. The PAC reviewed 2010-11 audit objections of the CDA wherein the officials briefed the committee members about alleged irregularities in four projects including Twin Towers, Centaurus, Safa Gold Mall and Shuttle Bus Service for Diplomatic Enclave.
During the briefing, audit officials revealed that the BNP group acquired 13.5 acres of land for the Twin Towers on lease for Rs 4.8 billion on March 9, 2005. The group had to pay 15 percent of the total amount in first 45 days while rest of the 85 percent amount was to be paid in 15 years. "Under the agreement, the group was supposed to pay Rs 276.6 million annual instalment but so far it has paid only Rs 970 million," the audit officials disclosed.
Khursheed Shah said the group was selling flats for Rs 80 million to Rs 110 million despite the fact that it had not paid the original amount to the CDA so far. "The public assets are being plundered in the broad daylight. The CDA should stop construction work on the Twin Towers," he said, adding that the NAB should start investigation and apprehend the culprits.
The NAB officials revealed in the committee that the group had secured a loan of Rs 1.6 billion from Bank of Punjab in 2007and completed the construction work from this amount. "The NAB registered a case against the group on complaint of the bank and recovered Rs 1.76 million," the officials said, adding the group has now obtained a stay order from the court. The officials said the group was allowed to construct only 13 stories but it has built 23 stories in violation of the agreement.
"The judges should also take notice of the billions of rupees corruption and order detailed investigations to identify real culprits behind this dirty deal," Khursheed Shah said. To a question, the CDA officials revealed that the then Director State Rehman Gilani signed the agreement with the BNP group. Shah said the NAB should also file a case against Gilani and investigate him. The committee member Junaid Anwar Chaudhry said the building is also a security risk and it should be demolished.
About the Centaurus Mall, the CDA officials said that 7.2 acres of land was leased for the project for Rs 6.6 billion, out of which Rs 5.7 billion have been received. The officials also revealed that agreement for the Centaurus was amended and the owner was relaxed to pay the amount in 16 instalments instead of 12 instalments. "Under the agreement, the owner was bound to pay all the instalments by August 2012 but it is yet to be materialised," the CDA officials said.
The PAC chairman directed the officials to recover the remaining amount in 30 days with the mark up. He also said that the owner has earned over Rs 20 billion and the CDA is still coming up with lame excuses to save the culprit. Shah also directed that the CDA should not give possession of land in future until it gets hundred percent of the payment. PTI member Dr Arif Alvi said the CDA has become a white elephant and the government should take steps to purge it from the corrupt elements.
About the Diplomatic Enclave Shuttle Bus Service, the CDA officials said that contractor Muhammad Hussain pays Rs 44,400 per annum to the authority while charges Rs 200 per passenger. The Audit officials, however, said that the contractor had been charging Rs 500 from each passenger. Khursheed Shah said the contractor has been earning Rs 15 million per month. The CDA officials said that they were investigating the matter but the file had gone missing. "The FIA officials should investigate the matter and report the committee in 15 days," Shah said.
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